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Forex Signals

Secret Forex Trading Signals

Secret Forex Trading Signals: Are They Real?

Visited Dan Murphy's website at Pretty cool site, actually. So is Murphy's other site, Obviously a smart, savvy guy.

Murphy's trading signals report, for which he charges about $80 per month, gives off forex signals to buy or sell according to an automated computer program called "The Smart Money Indicator."

Although we cannot get into the specifics out of respect for Murphy's copyright, we can say that his formula draws information about who is buying and who is selling stocks and stock-related assets, such as futures and options--the idea then is to follow "the smart money."

You, as a retail currency trader, can't do that type of thing in the forex markets. There is no way to know as much about who is buying and selling currencies as there is to know about who is buying and selling stock options.

They call them secret forex tips and trading signals for a reason: they're a secret.

London and New York and Zurich and Tokyo

Is there a secret "in the know" group that gets secret forex trading signals that, if you were in that "in the know" group, you'd be richer than everyone you know?

Well, certainly it is a fact that serious, professional forex traders congregate in certain areas of the world. London, New York, Zurich, and Tokyo are a few of the hot spots. These people know each other, certainly. And certainly they do talk amongst themselves about the latest forex signals, tips and forex trading software.

However, it doesn't much matter who knows who and what they say to each other. Unlike the stock market, the forex markets are extremely cruel to inside traders.
Indeed, the forex markets are somewhat immune to the manipulations of "the bad guys" who misreport earnings, spread rumors to drive down stocks, or lobby in Washington to secure lower tax rates for their type of income and then head back home to lock up more spoils.

The forex markets are too astronomically big to be swayed by the behavior of one or two hedge funds. Governments are the bigger players here.

Secret Forex Signals Via Governments

If you are thinking, hey, that would be a pretty good forex signal source if you knew someone within the U.S. government who had some sort of influence on the value of the U.S. dollar.

Yes, that would be a good forex signal indeed. If Ben Bernanke's assistant was a friend of yours from childhood and sent you a personal email stating that Mr. Bernanke was going to raise interest rates one year from now, you'd be in possession of a damn powerful secret forex signal.

All these other secret forex signals, though, must be viewed with a healthy dose of skepticism.

Stock market trading signals that are based upon buyer/seller identity information are logically valid, because that buyer/seller information is reported in a public forum. All the investor has to do--not that it's easy but it's simple--is write a computer program that obtains information about who's buying and who's selling, and then the trades generate automatically off that.

With currency trading, that kind of information is outright unavailable. Maybe there are a few select traders who are tuned in at a high level, but the far and away vast majority of people who want to sell you "secret forex signals" are not hooked up like that.
For that reason, it is most important that you personally evaluate and judge the methods by which forex signal providers derive their signals. Usually, if you really get into how these guys are making these calls, you will see that most secret forex signals are little more than guesses.

In the forex world, secrets are often lies.

Important Forex Information

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